Condo association management helps ensure curb appeal and protect property values. Condominiums would benefit from hiring a professional company that specializes in this service. In doing so, they can facilitate smooth operations and preserve the community’s financial health.
What is Condo Association Management?
Condominium management is the practice of overseeing the day-to-day operations of a condo association. This includes managing typical areas, maintenance and repairs, enforcing community rules, and managing finances.
While the condo board—consisting of volunteer unit owners—is primarily responsible for condo property management, many communities hire a professional management company for the job. A condo association management company helps the board carry out its duties and acts as an intermediary between the unit owners and the board.
Condo association management ensures that all aspects of the community run smoothly. From administrative tasks such as record-keeping and meeting coordination to more hands-on duties like property maintenance and emergency response, the management company plays a critical role in the condominium’s overall functioning.
Condo Association vs HOA: What’s the Difference?
While condo associations and homeowners associations manage residential communities, the two have critical differences.
Condo associations typically manage multi-unit buildings where residents own their individual units. However, these residents share ownership of common areas like hallways, lobbies, and amenities. They can also share ownership elements such as balconies, interior walls, and roofs.
HOAs, on the other hand, usually manage single-family home communities where residents own their homes and lots outright. However, these residents share ownership of community amenities like parks and swimming pools. They don’t typically share the walls and roofs of individual homes, too.
Condo associations often have more responsibilities due to the shared nature of building infrastructure and facilities. This makes condo association management more complex and specialized than HOA management.
What Are the Responsibilities of a Condo Management Company?
The exact responsibilities of a condo management company depend on the services it offers and the agreement it enters with a condo community. Some communities only require bare minimum services, while others seek full-service management services.
That said, condo management companies typically have the following responsibilities:
1. Maintenance and Repairs
One of the primary responsibilities of a condo management company is overseeing maintenance and repairs. This involves regular inspections of common areas and building infrastructure to ensure they are in good condition. The management company coordinates maintenance requests from residents and hires the appropriate contractors to complete the job.
2. Accounting and Financial Reporting
Financial management is a critical aspect of condo association management. While specific financial services can vary from one company to another, they usually include the following:
- Budget preparation and management
- Bank reconciliation
- Upkeep accounting records
- Financial statement preparation
- Reserve fund management
3. Fee Collection
Condo fees are the lifeblood of any condo association. As such, it is important to collect them in a timely manner. A condo management company can also help with this.
Condo management companies send owners invoices and offer them flexible payment options. They also work to minimize delinquencies within the community by enforcing strict collection policies. This includes sending reminders, setting up payment plans, and, if necessary, initiating legal actions to recover unpaid dues.
4. Rule Enforcement
Another responsibility of a condo management company is to enforce community rules and regulations consistently and fairly. This involves tracking violations, notifying residents of infractions, and following up to ensure compliance.
Violation penalties can change from one community to another. These can include fines and the temporary suspension of privileges. In Florida, though, a condo association must provide notice and allow the owner to appear at a hearing before it can take disciplinary action (Section 718.303(3) of the Florida Condominium Act).
5. Dispute Resolution
Condominium associations are no strangers to conflicts within the community. While the condo board can attempt to resolve the dispute, such situations usually call for third-party neutrals. A condo management company can exercise internal dispute resolution and even employ mediation or arbitration strategies to avoid litigation.
6. Board Assistance and Education
Effective communication between the management company and the board of directors is vital for the smooth operation of the community. The management company regularly updates community operations, financial status, and any issues that need board attention. They also assist in organizing and facilitating board meetings, ensuring that all necessary information is available for informed decision-making.
In addition, a condo management company often provides training and education for board members. This helps them understand their roles and implement the best practices in community management.
7. Resident Communication
Another responsibility of a condo management company is resident communication. This includes providing residents with a way to give feedback or make complaints, sending them timely notices, and keeping them in the loop on important issues.
8. Legal Assistance
A condo management company is well-versed in federal, state, and local laws that can affect condominiums. It can advise the condo board on legal matters, ensure compliance with the law, and help in amending the governing documents, among other things.
How Much Are Condo Association Management Fees?
The cost of condo association management services can vary widely based on several factors. These include the size of the community, the level of services required, the nature of the facilities, and the location.
Typically, condo management companies structure their fees as a flat monthly rate per unit or a percentage of the association’s monthly budget. This equates to $20 to $50 per unit per month or 5% to 10% of the budget. Board members should review the management contract carefully to understand the fee structure.
What to Look for in Condo Association Management Companies
When selecting a condo association management company, an association should consider the following qualities:
- Experience and Expertise. The board should look for a company with a proven track record in managing condominiums and a deep understanding of the unique challenges.
- Range of Services. The board should ensure the company offers comprehensive services that meet the community’s needs.
- Communication Skills. Effective communication is crucial. As such, it is best to hire a company that prioritizes clear, consistent, and transparent communication with the board and residents.
- Technology and Tools. A modern management company should offer online tools for maintenance requests, payment processing, and access to essential documents.
The Final Word
Condo association management is essential for the successful operation of condominium communities. In understanding the responsibilities involved and what to look for in a management company, condo associations can ensure they choose the right partner.
This is where Freedom Community Management comes in. Call us today at 904-490-8191 or contact us online to learn more about what we can do for you!